Oil Wars

Ongoing analysis of events in Venezuela and Iraq

Saturday, March 21, 2009

The government is going into debt and increasing the VAT

But will not touch the exchange rate and the price of gas? The percentage of foreign debt per GDP will also rise even without new debt as the nominal GDP inevitably will shrink due to the price of oil collapsing.

The way he is talking we might never devalue the currency under Chavez.

Minimum wage going up 10% in May and 10% in September, obviously a drop in real terms of more than 10%, but of course he will still claim victory because the dollar is pegged.